In recent years, the state of the housing market has been a hot topic. A slew of opinions are circulating about the market, what might happen in the future, advice to buyers and sellers, and more. With so much information available, how do you know what’s fact and what’s fiction?
As information from credible and non-credible sources continue to trend, misconceptions about today’s market have become “truths.”
Today we are addressing some of the most common misconceptions that we have seen about the current housing market. Let’s separate the fact from the fiction!
Misconception #1: I need to wait for conditions to be perfect to make my move (Rates drop/prices drop).
“ People jokingly say “the best time to buy was 10 years ago, the next best time to buy is now.” This isn’t always true, and we understand that inflated prices paired with 5+% interest rates can be intimidating. On the flip side, rates are still historically low, comparatively, and paying rent will always be 100% interest. Prices are not guaranteed to decline, and by paying rent you are guaranteed to build no equity and face increasing rental rates for years to come. The truth is, the external conditions will never be perfect. Knowing where you are financially, enables you to be able to create the best conditions for your specific situation–work with the market. Some questions to ask yourself before making the decision to buy in this market: What’s the opportunity? What’s my budget? Is this a wise move with the current job I have? We can help you determine the best path to take regarding your current situation.”
Misconception #2: Waiving the home inspection will make my offer stand out.
“Will your offer look better? It’s possible, but this decision could potentially cost you down the line. I NEVER advise you to waive a home inspection. Even if it is established from the beginning that the home is being sold “as-is”, we recommend having a professional examine the property and discuss with you its condition. You want to set yourself up for success, and you do that by getting as much info as you can up front. There are other ways to make your offer competitive without waiving a home inspection. We can help you determine what options are best for your situation.”
Misconception #3: I can price my home however I want and it will sell in this market.
“The short answer, no. While many people are getting top dollar (and more!) for their home, that’s not to say that any number will work. Buyers are still taking comparable homes into consideration when making their offers. Remember, most buyers have agent’s working on their behalf as well – if you are overpricing your home as a seller, buyers will be informed and likely deterred. Other factors to consider when pricing your home: conforming loan limits (if you don’t consider this you could limit your buyer pool), appraised values, etc. There is a lot of expertise that goes into pricing a home accurately, and doing so can make or break your experience on the market. Refer to image below.”
Misconception #4: There are no homes for sale.
“There are less homes actively on the market right now, yes. However, just as many homes (if not more) are being sold compared to recent years. These homes are either going off the market immediately due to multiple offers, or they are being found off market. It appears as though there are no homes available because the buyer pool is much larger in our current market, but that does not mean there are no homes for sale. We know it can be a frustrating market for buyers, but there are ways to find the right home for your needs, even now! Let us help guide you in this home search and home buying process.”
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